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Energy Deregulation - Who Really Benefits?

June 05, 2012 | Comments: 0 | Views: 202

Energy Deregulation

Years after its introduction into federal legislation, energy deregulation is still a hot topic among homeowners and consumers. In 1996, the Federal Energy Regulatory Commission ordered the giant public utility companies that were controlling the supply to open into competitive markets. This allowed for certain states to deregulate their utility industries.

In deregulated states, utility companies retain their ownership of the infrastructure for distributing services. The difference is there are new provider companies that compete to buy the resource from the utility company in order to sell it directly to consumers.

What Does Energy Deregulation Mean for Consumers?

When a state has energy deregulation, it means there are no longer fixed rates for services like electric and gas. Under deregulated status, people aren't forced into paying one local utility company for their basic needs. Usually there are a variety of independent third party providers that are available for people to choose from, rather than just one or two companies.

Another benefit to consumers of energy deregulation is their ability to vote with their dollars, as so to speak. People who support cleaner energy sources like hydroelectricity, wind, and solar power can choose utility providers that offer these green technologies.

With more options and providers in the marketplace, prices are generally lower and more competitive. Markets now see natural fluctuations, and utility companies work harder to keep their customers. This new power of free choice is in the spirit of American free market capitalism, and it is embraced across many states in the country.

Which States Have Energy Deregulation?

States vary on their energy deregulation status according to industry and level of choice. Some states only offer partial choice, which is a situation where only part of the state's customers are allowed to choose, or that choices are only available on a trial basis.

Currently there are 19 states that have deregulated the gas industry. These states are Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Pennsylvania, Rhode Island, Virginia, West Virginia, and the District of Columbia. Five states - California, Delaware, Missouri, Texas, and Wyoming allow for partial choice.

Electricity deregulation is more popular in the U.S., with 24 states achieving it. These states are Arizona, Arkansas, California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, and the District of Columbia. Currently there are no partial choice states in the electricity market.

If you are interested in seeing the different prices and services that are available in your local area, it is recommended to browse online for resources. Information on energy deregulation in your state is easy to find when you look in the right places.

Save time finding out about energy deregulation by clicking that link. Also if you want to see the opportunity that North American Power has for the average person in savings as well as a financial opportunity with energy click that link as well.

Source: EzineArticles
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